Search
Generic filters
Search in excerpt

An ETF for every investor.

CASH

Horizons High Interest Savings ETF

Price
$50.16
$0.03
0.05%
NAV
$50.1440
$0.0058
0.01%

Benchmark

Fixed Income

Fact Sheet
Learn more about CASH

QQCC

Horizons NASDAQ-100 Covered Call ETF

Price
$9.78
$0.04
0.41%
NAV
$9.7762
$-0.0039
-0.04%

Active

Covered Call

Fact Sheet
Learn more about QQCC

HRAA

Horizons ReSolve Adaptive Asset Allocation ETF

Price
$11.22
$0.02
0.18%
NAV
$11.2056
$-0.0234
-0.21%

Active

Corporate Class – Alternative

Fact Sheet
Learn more about HRAA
Explore All Products
Search
Generic filters
Search in excerpt
Back to Learning

Inverse Indexing

A More Efficient Way to Express a Negative View on the Markets

What are Inverse ETFs?

Inverse ETFs are investments that seek to deliver the opposite performance of their reference index on a daily basis, before fees and expenses. Horizons ETFs Management (Canada) Inc. offers inverse ETFs based on two of the most widely followed market indices in Canada and the United States:

Who Uses Inverse ETFs?

Ideal for investors seeking to profit or protect during market declines or periods of increased volatility, and who are comfortable with a high degree of risk.

How an Inverse ETF Works

Inverse ETFs are similar to holding short positions to hedge against, or profit from, falling prices.

inverse1.PNG

For Illustrative Purposes Only

The Inverse ETF strives to return the opposite of its reference index* on a daily basis

*Before fees and expenses.

Example: An investor who owns a broadly diversified portfolio of Canadian large-cap stocks believes that the Canadian large-cap market will decline over the next quarter. The investor could hedge their portfolio against a decline by buying the BetaPro S&P/TSX 60™ Daily Inverse ETF to hedge against it. By buying an inverse ETF, the investor can avoid selling stock from their existing portfolio, which may incur a capital gain/loss, while continuing to benefit from the dividends paid by those stocks.

Key Benefits of Inverse ETFs

  • No margin account required (no borrow/margin calls to worry about)
  • Eligible for non-margin accounts such as RRSPs, RESPs and TFSAs
  • Risk is limited to the capital invested (short selling, on the other hand, is subject to potentially unlimited loss)
  • Can reduce risk without having to sell existing stocks and incur a capital gain/loss
  • Allows investors to continue receiving any dividends paid by the stocks they are hedging in their portfolio

BetaPro S&P/TSX 60™ Daily Inverse ETF (HIX)
The BetaPro S&P/TSX 60 Daily Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of the S&P/TSX 60 Index™.

BetaPro S&P 500® Daily Inverse ETF (HIU)
The  BetaPro S&P 500® Daily Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of the S&P 500®. Any U.S. dollar gains or losses as a result of the ETF’s investment will be hedged back to the Canadian dollar to the best of its ability.

These ETFs are highly speculative. They are intended for use in daily or short-term trading strategies by sophisticated investors. If you hold these ETFs for more than one day, your return could vary considerably from the ETFs’ daily target return. Any losses may be compounded. These ETFs are not for investors who are looking for a longer-term investment.

Get Horizons insights in your inbox

"*" indicates required fields

Please select whether you are an…*
* Indicates required field

Related Posts

At Horizons ETFs, we believe in education as empowerment. We endeavor to equip Canadian investors with the knowledge and tools they need to navigate the investing world. From the ETF basics to more complex topics like how our suite of inverse and leveraged funds work, our comprehensive learning library aims to be accessible for all investors, from beginners to experienced traders!